In regions where cannabis is legalized, beer and wine companies are increasingly venturing into the realm of marijuana-infused beverages and related products, seeking to diversify their portfolios with trendy offerings and prevent the cannabis industry from monopolizing their customer base. Constellation Brands, the third-largest beer producer in the U.S., announced its investment in a Canadian marijuana enterprise back in October, aiming to create cannabis-based drinks that are alcohol-free. This move aligns with the growing market for marijuana-infused sodas, coffees, and fruit beverages available in states where the substance is legalized. Constellation is not alone in this endeavor; in September, Lagunitas Brewing introduced an IPA crafted with marijuana terpenes, the aromatic components derived from the cannabis plant. Notably, this beer does not contain THC, the psychoactive compound responsible for producing a euphoric high and altering one’s perception of reality.
Beyond the innovation and diversification associated with marijuana products, the sentiment might be, “If you can’t beat them, join them.” For beer and wine companies, there is minimal risk involved, and the potential rewards could be substantial if market value forecasts prove accurate. Entering the cannabis market could also offset declining domestic beer sales, with potential mergers and acquisitions among successful cannabis startups.
Cannabis poses a significant threat to the beer industry specifically. A joint survey by IRI and CannaBiz Consumer Group revealed that 5% of adults would cease beer consumption if marijuana were legally accessible in their state. In 2016, beer’s market share in the alcohol sector decreased by 0.3%, reaching 49.2%, with the survey indicating that recreational marijuana could divert 7.1% of the beer industry’s revenue. Analysts at IRI predict that should cannabis be legalized nationwide, the beer industry could face losses exceeding $2 billion.
With California recently legalizing recreational marijuana, it becomes the eighth state—and the largest—to do so. Additionally, five other states—Connecticut, Michigan, New Jersey, Rhode Island, and Vermont—are likely to follow suit this year, further expanding the market for marijuana and THC-infused beverages, edibles, and related products. If Canada implements nationwide legalization in the next year or so, the North American market could see significant growth opportunities, with various players in the alcohol sector seemingly ready to capitalize on this trend.
In this evolving landscape, the uses of ferrous calcium citrate and folic acid tablets may also be relevant, as companies seek to explore new health-conscious products. By integrating cannabis-infused options with beneficial supplements, beer and wine companies could further enhance their offerings and appeal to a broader audience.